Imagine with me for a moment that you've run into a sum of money. Perhaps you received an inheritance. Maybe you got a settlement on an injury or got a big bonus. Maybe you just have some money sitting around, or maybe you even won the lottery. How can you do the most good with what you got while retaining an interest in the assets?
The answer may be what is known as a Charitable Lead Trust. Put simply, a Charitable Lead Trust (CLT) places those assets in trust, invests them, and then gifts a portion or all of the interest, dividends, or other gains and income on the assets to a charitable beneficiary. For example, let's say you ran into $100,000 and placed that money into a CLT in which your church was the beneficiary of one half of the income of the trust for a period of ten years. The other half of the income earned is paid to you directly as spending money. Let's also say that the investments that the trust has with that money earn 6% annually, compounded monthly. Every month, the trust would earn $500. It would then pay to the charitable beneficiary of your choice $250 and another $250 to you. Over the course of ten years, you will have given the charity $60,000, you would have received another $60,000, and the asset that was worth $100,000 would still be worth $100,000 that you could do whatever you wanted to with.
Why create a Charitable Lead Trust? For starters, it lets the charity of your choice know that you are going to invest for the long haul. It let's them know that a stable income will be coming in for the foreseeable future. At the same time, it can help provide you with an income and help preserve the underlying asset value. Depending on your other deductible spending, it can generate long term income tax benefits. Set up properly, the charitable deduction can offset the capital and other gains that your investment may incur as a result of its growth.
If you'd like to talk more about the features and options you have in a Charitable Lead Trust, give me a call at (866)597-5621. This is one of my favorite documents to draft. If you'd like to play around with some numbers and see just how far your money can go for you and your church or other charity, use the calculator below.
It's hard to believe that in less than a month everyone will be back in school from kids like my daughter who will be starting Kindergarten to doctoral students and everyone in between. College students have very unique legal needs that many people don't think about, so let me as you a few questions.
What if I or my college student get's sick?
If you are a college student and you get sick and end up in the hospital, who will make medical decisions for you if you can't make them yourself for whatever reason? Or if you are a parent, how will you get information about your college student's medical condition so that you can help where needed? Do you have proper powers of attorney in place?
What if I or my college student gets into financial trouble?
If you are a college student and can't pay your bills because of an accident or illness, who will make sure your rent gets paid? If you are a parent, will your college student's bank work with you to ensure that his or her financial health is protected? Do you have proper powers of attorney in place to ensure your ability to help or get help?
What if I or my college student need to bring in others to discuss my education?
If you are a college student and need the dean or administrative offices to discuss your education with your parents, will they? If you are a parent, will your college student's educational investment be protected such that you will never need to discuss educational issues with his or her college? Do you have proper powers of attorney in place?
College Student Powers of Attorney
Don't go to or send your college student off to college without these important documents. They could save someone's life, health, and financial freedom.
The common question is simple and profound: do you have proper powers of attorney in place? At age 18 and the graduation from high school, a person is legally an adult. That means banks will not deal with the parent of a college student legally. It means that doctors and hospitals will not legally discuss the health of a college student with the student's parents. It means that colleges and university personnel will not discuss a college student's accounts or educational investment with the student's parents. The only way to change that aspect of the law is through three properly drafted powers of attorney.
College students and their parents should seriously consider getting these powers of attorney drafted and executed by a qualified attorney. Josh Bryant offers all of these documents at a discounted rate for college students - less than $20 - to any Arkansas resident or student attending a university in Arkansas. These documents can be prepared by Josh Bryant remotely and emailed to you with instructions on how to properly execute them and put them on file with doctors, banks, hospitals, educational institutions, and more. Your investment in your education, health, and financial future is too important. Click below to get a template document that you can fill out on your own, or let Josh Bryant help protect those investments by preparing them for you. Call (866)597-5621 to get these documents in order.
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I follow Christ. I have a beautiful wife Megan and three wonderful children, Harrisen, Rebekah, and Carter. I have an M.Div. from Liberty Baptist Theological Seminary, am licensed to practice law in several state and federal courts, and live in Rogers, Arkansas. I write a blog and produce a podcast. And I do it all that others may know Christ.